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Competitive strategy of competition

   

Added on  2021-02-19

10 Pages2767 Words187 Views
COMPETITIVE STRATEGY TABLE OF CONTENTSINTRODUCTION...........................................................................................................................2MAIN BODY...................................................................................................................................2SWOT analysis.....................................................................................................................2PESTLE analysis.................................................................................................................4Ansoff's matrix......................................................................................................................6CONCLUSION...............................................................................................................................7REFERENCES..............................................................................................................................9

INTRODUCTIONCompetitive strategy is refers to the plan for long term in respect to a specificorganization to achieve the competitive advantage as compared to other competitors inmarket (Boscagli, 2019). Its goal is to create safeguarding position in the market and tocreate a good investment return. In order to sustain in market for longer durationcompanies have to take support of various development strategies or tools that mayhelp in evaluating existing condition of business and can help in taking right decision.PESTLE is the tool which describes external market situation and its impact oncompetitive position of the firm. SWOT analyses highlights internal situation of businessand help in making necessary changes in existing practices to improve internalcondition of firm. TESCO is well-known British international grocery retailer company ofUnited Kingdom and its headquarters are situated in Hertfordshire, England. Thefounder of the company is Jack Cohen and it was established in 1919. The essay willinclude different strategic development tools which will include PESTLE (Political,Economic, Social, Technological, Legal and environmental) factors that will help thecompany to gain the competitive benefit.Study will describe impact of various factors(macro factors)on business environment. Report will describe practical application ofPorters five force model in context to Tesco. Uses of SWOT analyses as developmenttool will be explained in this assignment.MAIN BODY In order to drive the business SWOT analysis PESTEL, Porters five force willhelp the company to gain the competitive benefit and to increase the revenue.SWOT analysisSWOT includes the Strengths and Weaknesses that are internal factors of thecompany as well as Opportunities and Threats that will be external factors for theTESCO company. It helps TESCO to identify its current market position in respect ofStrengths, Weaknesses, Opportunities and Threats.StrengthsThe strengths of TESCO company is that it is the biggest and well-known groceryretailer organization in United Kingdom. TESCO has high number of sales as well asincome relatively to other companies in Britain with 28% increase in profit. This is

strong point of company which helps business in entering in new markets easily andsustaining into that global market. It has large market share as relative to othersupermarkets with 4% and also Tesco is geographically diversified and has its globalpresence not only in Europe as well as America but also in Asian markets. It hasdiversified product range and efficient network in respect to supply of the products aswell as use of superior technology. Diversified product rage aids business in attractingnew buyers. By using strength of firm, Tesco has become able to make future plans andgaining success in market. WeaknessesTesco company has failed in performing operations in the countries like US,Japan. It failed in export that made the company to close its outlets. By analysing suchweakness entity can make effective expansion plan which may support in entering intonew market successfully. The company is following the low cost scheme which haveresulted to decrease in profits. Due to the financial error like high debts has affected theprofits of TESCO company and also its poor functional in particular sectors of themarket because of improper market research(Stefanone, Yue and Toh, 2019).OpportunitiesTESCO has the opportunity to grow the business of Jack that is newly introducedby the company and will be able to compete with Aldi as well as Lidl as low costchallenger. The opportunity regarding the strategic alliance and partnerships with otherwell-known companies that will result to attract customers. It has also the possibility todeliver its products online.ThreatsEconomic crisis like government regulations, tax that can affect the performance of theTESCO as well as its efficiency. For example, if government makes changes in taxpolicies and export laws then it would create threats to business and entity will not beable to develop its global brand presence. Decreasing economic value for pound canlead to increase in prices of Tesco products. The another threat is the inability of Tescoin order to uphold the cost leadership as well the problem regarding the new ethics. Forexample: if value of currency get down then it will impact on investment planning ofTesco hence overall functioning of business will be affected.

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